Spruce Pine Mfg

question 102

Multiple Choice

Spruce Pine Mfg. Co. has total fixed costs of $300,000 a year. The owner estimates that average variable costs for its product will be about $30 next year. The selling price to wholesalers will be $50. The break-even point is:

• A) 6,000 units.
• B) 10,000 units.
• C) 12,000 units.
• D) 15,000 units.
• E) None of these alternatives is correct.

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